Apparel company, American Eagle Outfitters, has agreed to settle a class action lawsuit in which plaintiffs claim the company violated the Telephone Consumer Protection Act (TCPA).
Starting in 2010, American Eagle allegedly sent over 600,000 text messages to cell phones without consent, or after the recipient had opted out of future messages. Experian Marketing Solutions, a third party telemarketing company that did business with American Eagle, was also named by the plaintiffs. However, Experian successfully filed a motion to dismiss without prejudice as the plaintiffs failed to prove that Experian actually sent any of the text messages.
American Eagle and the plaintiffs met with a mediator in June of 2016, which ultimately led to the settlement of $14.5 million. Class members will receive between $150 and $300 each.
The costs for companies to defend themselves against TCPA lawsuits can add up quickly. Strict compliance from day one of any marketing campaign is the best way to prevent similar headaches.